Question

Armando put $78 into a CD that pays 4.9% interest. According to the rule of

72, approximately how long will it take for his money to double?
O
O
A. 159.2 years
B. 15.9 years
O
C. 14.7 years
O
D. 146.9 years
SUBMIT

Answer 1

Answer: 14.7

Step-by-step explanation:

A P E X

Answer 2

It will take 14.7 years for Armando's money to double.

Option C

Step-by-step explanation:

The rule of 72 is generally used to estimate the number of years required to double the invested money at a given annual rate of return. And alternatively to find the number of years required to double the money at a given interest rate, we have to just divide the interest rate into 72.

Here, the interest rate is 4.9%. Therefore, it would be as follows

`\Rightarrow(72)/(4.9) = 14.7 \text{ years }`

Rule 72 can be used to identify the following:

• Number of years it takes an investment to double,
• Number of years it takes debt to double,
• The interest rate must earn to double in a time frame,
• Number of times debt or money will double in a period of time.